What changes would you make to Proposition 13 Essay

What changes would you make to Proposition 13 - Essay Example eal estate property value for tax purposes to 1975 to 1976 market value; reduced tax increases to 2 percent annually especially for continuing property owners; and provided a reassessed value base for new property owners. It also reduced real estate taxes to 1 percent, and required two-thirds votes for legislative revenue or tax increases among others. Proposition 13 significantly reduced property taxes for both homestead and commercial properties. The major driving factor behind the enactment of the proposition 13 was the notion that Californians should not be priced out of their homes through high taxes. This initiative has been termed the third rail of California politics because politically, it is very difficult for policymakers to alter it. This paper provides a very thoughtful discussion on proposition 13, its meaning, what happened, some of the proposed amendments to this proposition, its impacts. It will also cover what is different prior to and after the enactment of this in itiative. Proposition 13 has remained a law in California for a long period since its inception and its supporting vote was perceived as a tax revolt against California government (Ferreira 662). This initiative affected property taxes, individuals’ lives as well as businesses. This proposition dramatically changed California constitution and it helped taxpayers to address the rising property taxes and increasing state revenue. This proportion altered the structure of the property taxation and how taxes are distributed in California. There are many things that took place and various aspects or practices changed upon the formulation of this proposition. Firstly, this law removed much of the fluctuation of property tax revenue that resulted to a more stable revenue source for local government. Secondly, proposition 13 decreased the rates of property tax to 1 per cent. In 1977, the average property tax rate in California was 2.67 percent but proposition 13 reduced the rate to 1 percent